MICRO-ENVIRONMENT

1) Suppliers
- Ramo has only two suppliers that those are: A national company of oil that has
been in association with Ramo since twenty years. And like this relationship they
have the same with the suppliers of the wheat, they don’t have suppliers for the
flour because the have their own grinder for the grain of wheat.
- Also they have their own farm where they produce all the rest of the basic
ingredients that their products have.

2) Intermediaries
- In the proses of distribution they have little changes between the point where the
product its going to be distributed. In this case they have the tricycle mode of
distribution, that spread the products of the company to all the little stores
“tiendas de barrio” and to the street sellers. On the other hand, they have the little
truck that deliver to all the little supermarkets the products of the company, and
for the last, they have the normal trucks that deliver the products to the big
supermarkets.

MACRO-ENVIRRONMENT

1) PESTEL
a) Economical
- According to de DANE, the increase of the minorities market by 2,8%
- The Price of the product and ingredients that the Company has to obtain, has
increase because of the inflation, due to this the Price of the product increases and
makes it less attractive to the costumers, because the Price is essential for them

b) Social
- Family influence a lot on the food that they consume. For the middle and low
classes, the healthy food does not pryme. The common denominator is satisfactory
but cheap product, what Ramo is looking for.
- In Colombia the social environment influences a lot on the relationships, which
most are looking for something cheap, tasty and quick for them to eat and social
entertainment.
c) Demographic
- According to PNUD studies on “Colombia rural” 2011, 75% of the population live in
urban areas8
- According to DANE the poverty gap is much or less 20% of the population, extreme
poverty 7.9%
- Per capita income at 2012 was $894.552
- Lifetime has extended for the adult population, but natality has decreased
- Each year there are more birth tan death, making it easier to for the market
because there is more consumers.9

d) Environment
- The industry is represented in its majority in 5 city’s, shown in the next table

City Bakerys Participation

Bogota 7000 59.6%
Cali 2165 18.5%
Medellin 1532 13.09%
Barranquilla 565 4.83%
Bucaramanga 466 3.98%
TOTAL 11728 100%

e) Technological
- The technological advances can make a competitive industry more efficient by
saving time and making transportation more accessible decreasing the cost, but
Ramo is a traditional bakery which makes low productions, still depends on people
to now the recipe and mixing of the products .So they are new technology that
they don’t have or don’t want to use, that if they used they could have a better
production proses and could be competitive in the big market with industries like
Bimbo, that they have invested a lot in their technology which has make publicity
of their name and products that are standardized easily recognizable on the
market.
 f) Legal
- There are some kind of regulations for the food producers, the name of it, is
INVIMA, which decides which products can be commercialize and which not. So in
terms of the products that RAMO produces, they had to have a regulation in there
production plants for pass the sanitary standards established by INVIMA, an also in
term of the product it self, all the product must have in the package the nutritional
label of the product.
- The superintendence of industry and commerce regulates that the user is
protected against al
- The company’s that have workers have to respect and have the necessary
regulation for the workers and the unions of them

2) Analyze if competitors

1. Competitors
a. Pipiolo (marinela)
b. Pepitas (marinela)
c. Barra Chocorramo (RAMO)
d. Submarine (marinela)
e. Pinguinuos marinela (marinela)
f. Maria Luisa (comapan)
g. Pirutin (comapan)
h. Ponque de chocolate con batido (comapan)
i. Ponky (colombina)
j. Ponky Ponke (colombina)

These 10 products are competitors of Gansito product from RAMO S. A. because

first of all, all the products are similar to our product in terms of tastiness,
presentation and added value.
In this case the added value in all the product is that, the main part of the product
is a cake bar or a little cake, filled with some type of flavored cream.

a. Main competitors
a. Marinela
i. Bussines actions: Bimbo Group (company that owns marinela)
invest 8 million dollars and the creation of 300 jobs in Jalisco,
Mexico with an open of a new plant1.
 ii. The Bimbo Group acquire a company called Canada bread that gives
them more diversification in USA and Europe2
iii. The Bimbo Group accomplish their goal of have 0 residuals in the
sanitary landfill in USA2.
iv. The Bimbo Group finished the dialogs with Sara Lee for the
integration to the portfolio of brands2
v. Marinela have been accused for “hide” the inflation and the rise in
price making the packages smaller3.
b. Pipiolo
1. Have limited editions with new packages and unique flavor.
2. The company renovated the package image4

3) MARKET

In Colombia the products of the company are categorized in the bakery sector
according to the DIAN. This market belongs to the manufacture industries and
specifically in the category of “elaboration of others alimentary products”.

According to the this the bakery sector is classified in the C group of the
manufacturer industry. And the specific group have five principal characteristics
that are:

 Elaboración de productos de panadería.

 Elaboración de cacao, chocolate y productos de confitería.
 Elaboración de macarrones, fideos, alcuzcuz y productos farináceos
similares.
 Elaboración de comidas y platos preparados.
 Elaboración de otros productos alimenticios n.c.p

and in all of them RAMO had reporter economical activities5.

The bakery industry its conformed by industrial (refered to companies that make
diferent types of product and sell them in a specific package), medium (that have
their own brands) and little (that have artisan porsses, and are the main group in
the industry with a 70% of the segment) companies.

In terms of production, in the first semester of 2015, the report shown that the
total PIB increase 1.8% respect from 2014.
The DANE, reported that in 2015 the bakery industry reported a diminution in the
total production according to the year before, with a decrease in 6.6 point, but it
has to be known that the total variation of all the manufactories was negative, with
an average of -2.5 points.

Also in this report was shown the variation of the quantity of employer’s ho belong
to the industry, and the bakery sector reported a huge decrease according to 2014
study. An its important to known that was the industry that report the lowest
variation, so it means that many people are unemployed and may refer to closed
sotres6.

The DANE reported that the number of stores are between the 600, but its known
that the stores that are registered in the data base, are only the ones that have 10
or more employs, so there are many of them that aren’t registered but they are
still selling bakery products (this phenomenon its shown in the table 1 that report
approximately 11000 stores).

According to Adepan the sales of this industry were around the 3 billion COP in the
2011, with this they have said that the average consume of bakery products its like
23 kilos per year, this is way to low in comparison with other Latin American
countries.

The principal channel of distribution is the massive consume of the products, this
represented in the big sales of the industry. This phenomenon has to be seen with
a specific perspective, because the main sales are from individual products, so all
the people could be the costumer and be a loyal one.
 The trends in these days are that the production process has to be artisanal, in fact
RAMO launched a brand of cookies called “Arte-Sano” to fulfill this market trend.
So the sector isn’t looking for new technologies advances, only using the
technology that already exist for all the manufactured process.

The future perspectives of the industry are that the increasing of the dollar value,
affects directly the production and the cost of the supplies, affecting in this way
the total production and total sells of the industry. With this the government start
a plan to increase the production of local wheat and other cereal, with the main
objective to produce our own products7.

SEGMENTATION & TARGETING

Segment 1 Segment 2 Segment 3

Loyal sweet toothed No-consumer
Lifestyle People who used to People who like to People who don’t
consume this have once in a while like or cant eat
products because is a sweet treat in sweet products
part of their diets their meals
Demographics People older than All people, but Older people or
25 specifically women with some type of
between 12-30 disease
years
Activities People that are very People with balance People that prefer
often in contact diet and life to eat other things
with this type of and not in a bakery
products and know
what are they going
to buy
Frequency High Normal None
Buying Behavior Spend the same all Spend more money Don’t go to bakery
days for fulfill their and spent in other
craving type of foods

Target
Buyer decision making process
1. Awareness: The people recognize the brand because it is very traditional in the
country and have a lot of history. The main product that the people recognaized is
the CHOCORRAMO, but in second place are the “Ponque tradicional”; that was the
first product of the company and the “Gansito”.
Also the people are in contact with the existence of product by different ways, like
first of all the promotion that the brand make for the “gansito” is the publicity;
specifically, in the tricycles of distribution that they use.
On the other hand, the people can recognize the product in the different
supermarkets and minimarkets, and nowadays there are some kind of apps where
people can find the product.
2. Interest: When consumer know about the product, they start to look for
information about it, like where they can buy it, haw much it costs, the experience
of other people that have already tried and the different flavors they offer.
3. Evaluation: Because of the product has different flavors and fillings, people have to
look the possibilities that they have to choose the product, base on the ingredients
of the product but also the preferences of the consumer.
Also when people look for this product, they could compare similar products from
different brands, and fulfill their necessity.
4. Trial: When people choose the product with the specific flavor, the buy it and
enjoy it.
5. Adoption: Our product doesn’t have this part of the buyer decision making process,
but the brand has other products with this type of characteristics.

SWOT Analysis

Strengths:
 It´s a 100% national product
 Their products are accessible to almost all the economical levels
 Its one of the most beloved brands in the country (EM 2014)
 It`s related with tradition, artesian and natural products
 According to the Supersociedades report, it´s a sustainable company(BPR
2014)

Weaknesses:
 Lack in publicity
 With the process of distribution, they can’t reach all the country
  Because it is a familiar company, they have not done many changes in the
structure of the organization
 Deficiency in inovaton of the package

Opportunities:
 The only big competitor its only one brand: Marinlea from the “Grupo
Bimbo”; it is a big competitor, but its only one
 Capability of creation of new products/flavors
 Because of the process of distribution, the could “attack” the other parts of
the country that don’t are covered

Threats:
 Tendency of all the products to became light.
 Use of the technologies in the main competitors
 New generations don’t know the tradition of the brand and some time
prefer different flavors that are provide from other type/brand of products

SWOT ANALYSIS
Opportunities
Strengths - Because of the brand is one of
the most beloved in the
country they could attack
other places around the
country
- The fact that it is 100%
national company gives them
the advantage from the
competitor
Weaknesses - There is a lack in the
innovation of the package, but
recently one new flavor was
released, and they should
launch new flavors
- The fact that they haven’t
change the organization of the
company, doesn’t implies that
the couldn’t compete with a
big company like they have
been doing it all these years.
Threats
- Because of the technology
development in the industry,
the can become a big model
and become a representative
of “artesian” bakery
- Transfer the loyalty of the
older people to the children
- They should make a
renovation in the product,
specially in the package, with
this the would reach
different type of segment
(younger people)
- Start doing more publicity to
change the way the people
see the product (sugary
product) and let them know
that the product is make
with 100% natural and
national product, so with this
 the product would be more
acceptable to the “light”
people.

POSITIONING STATEMENT
TO: The segment categorized with the name of loyal, that are people older than 25
years, and have in their regular diet sweet bakery products, and all days buy some
type of this product.
CATEGORY REFERENCE: The ganzito product is a chocolate glazed little (vanilla or
chocolate) cake with filling.
BENEFIT: Gives you the best and fluffiest little cake with the best glaze of chocolate
in Colombia (glazed of the chocoramo)
REASON TO BELIVE:
 Easy way to have a quick (to go) desert.
 Best correlation between price and benefits
 All ingredients are local and the majority are produced in the own factory
 Produced at the most traditional bakery company (RAMO) in the country

PRODUCTS LINE
(excel field)

The products strategies are based on a resent launch that the company made, this
product its called Donitas. The reason of that its because in terms of our selected product
of the company, the product it self is right, and it is correlated with the objectives.

New-Product Development Process

The process of launching a new product start way before the actual launch. The company
have to do 7 “steps” before the launch. The first one is the generation of the idea, in this
step is where the New product is created; in the particular case of our company, they launch
a new product called “Donitas” so for that the first step was the generation of the idea in
this case is create other use for the famous chocolate cover of the company.
The second stage is the inspection of the idea inside the company, so in this stage the
company create a focus group to evaluate the previous idea and determine if its accurate
with the needs of the costumers and with the vision and type of products that the company
have. For Ramo, the evaluations that the group made, were that if the new product is
innovating and its not only a new version of an existent product, also if it has an added value
over the competitors’ products.
The third phase is similar to the second one. Not inside the company, but asking the clients
instead. So, for that the company choose a small group of people to evaluate the new
concept, and define if its clear and if it fulfills a necessity or a want that they have. In this
case, Ramo made a tasting test of the product and have a positive evaluation.
The fourth part of the development process of a new product is the business analysis, in
this part the company have to assess whether the product would we profitable. For this
they have to do the segmentation and targeting of the market, the strategy for the
positioning of the product, identification of the competitor, the demand of the product and
things like that. In Ramo this step not vary much, because they should do all that things to
see and understand the market were the new product its going to be. So with the “donitas”
they understand the market that they want to attack, because is very similar to the market
where they already are, so with that they know very well the people that they are targeting.
When the market has been understood, the next step is to transform the idea in a
realization, creating a prototype or limited production, so you could evaluate in an accurate
way al the design and specifications of the product, but also to give something tangible to
the testers. Here Ramo made a small batch with the new product and test the flavor, form,
consistency and other bakery’s characteristics.
Once the product is approved, the commercialization start, and here is where the company
study the prices, the channels of distribution and implement the marketing plan to
positioning the product in the market.

Product life-cycle strategies.

The life-cycle of a product consist in 4 stages: Introduction, Growth, Maturity and Decline.
In the first part od the life-cycle, the marketing strategies are more related with the
promotion and advertising of the product (like we can see in the case of “Donitas” the
publicity right know is on all the social networks and all the media), doing this, the company
hopes that some costumers (early adopters) star to buy the product. This could be by
managing the price of the product, making it low to boost the adoption of the product to as
many people as possible, in the particular case of Ramo they enter the product with a low
price but that price is the price that the product would have in “normal” circumstances,
because making it lower wouldn’t be profitable.
In the growth part, the promotion starts to focus more in expanding the market for the
product, so the companies star to look new segments to attack and sometimes expanding
the product family, like making it in different flavors or sizes. The product “donitas” isn’t
already in this stage, but when it do, the company would make different flavor, or made
them with fillings or something like that.
The best part of the life-cycle of the product is the Maturity phase, because is where the
company start to se all the rewards. So the importance here is to make this phase as long
as possible. For this, the companies usually update the features of the product, make some
price promotions (to compete with the direct rivals), and the advertising is more focus in
encourage the people that never have tried their product. But all this marketing activities
are only a small part of all the things that the company have been doing in the previous
steps.
The Decline stage, is crucial, because as a company, you have to know when is the time to
take off the product of the market, and don’t let it convert in to a cost to the company,
because if you produce it continuously, the sales would go down, so you start to produce
less product, and the cause of that is the ratio cost of production/quantity it going to be
higher, and that’s worst than taking it off the market.

Price
The major price strategy of the company is based on the competition pricing (showed in
the table), with this the company looks for the cheapest and competitive prices. But also it
has a little bit of “every day low price” strategy, because the company search to have
always and in all the products the lowest prices in the market.

Rank/Competitors Submarino Pipiolo Pepitas Gansito

Maximum Price 700 900 1000 800
Medium price 600 800 800 700
Minimum price 500 600 700 700

With this we can see that the price is based on how the competitors make their prices
strategy and make the price of our company lower.

New-Product Strategy
Because of the price strategy that the company have is the competitors-based strategy,
when they launch new products, they focus in two tings, the first one is the price of similar
products (competitors) in the market, and also that the prices have to be low to attract
the consumers, this prices would be in most of the cases the price that the product would
have over the time, because of the fact that they select the lowest prices in comparison
with the competitors, they couldn’t make them lower, because they could lost
profitability.

Product Mix Strategy

The strategy that the company/product use is the Product line pricing, because they take
into account the other products that they have in their line, and make the price
competitive obviously with their competitors but also with their own products.

Price-Adjustment Strategies.
The company, specifically the product an all the bakery products of the company, don’t
have any type of form to do adjustment to the prices of this products.

Price cut or increase

The changes that the company could make are based on the cost of production; related
with the inflation and the cost of their supplies, in this case there would be a increase in
the price. This also could happen if the demand is higher (more benefits). In the case of
our company its unlikely that they cut the price, because of their strategy, they´re looking
always to have the lowest price possible and rentable.

Objectives
1. To increment the share of market in 1 to 5% in one year
2. Increment the internal market share od the product in the company in 5-10% in
one year

Value Proposal
The value proposal to fulfill the objectives is to “transform” the way the people see the
product, with a new image, new flavors, and new post-buying interaction with the
consumer. To do this, the strategies related to each of the four P´s are:

Product: The idea is to renew the package of the product; this would be more
specifically in the promotion strategies. But also, we want to create a new type of
flavor of the “Gansito”, with this strategy the “Gansito” depth will increase and
with this the costumer will have more option to choose; this new flavors would not
change the cake itself, but the idea is to have more (around 2) new fillings.
Through this more and different type of consumer would buy more the product.

Price: Because of the philosophy of the company, the price strategies are related
to competition pricing (showed in the table 4), and also they have in a small
portion “every day low price” strategy. With this the price of the product will not
change in comparison with the actual in the market, because it already have the
lowest and profitable; for the company, price.

Promotion: For the promotion part, we stablish some specific objectives related
with the promotion, but these ones were thinking in the main objective. These
objectives are based on the Persuasive Advertising with the objective of building a
brand preference, because of the preference that people had to others products
form the main competitor (marinela). To achieve these objectives, the strategy is
 to make three promotion advertising, the first one an Outdoor advertising, that
would we revolutionary for the company because they never had done something
like that, in this specific promotion, the idea would we to use the big trucks of
distribution that the company use, and in the bodywork of the truck put the
advertising that will have the image of the product open but inside the package
(standing out the colors of the package, the fluff of the product, and the
colors/quality of the filling and chocolate cover) and with the image a phrase that
said: “ The Gansito that grow up with you”, this to make emphasis in the target
selected, that are people older than 25 that have been eating the product since
children, and in that time the product of the competitor brand were not as develop
as nowadays.
The other advertising would we an internet one, with a short video showing the
process of making the product, making emphasis that the Gansito is the same as
the Chocorramo (best selling product of the company and one of the best selling
packaged bakery products in the country), but with an added value; in this case the
filling, in this part making emphasis in the new flavors developed in the product
strategies. So with this promotion the people could buy more Gansito because the
know that it is a better version of the Chocorramo.
The last one would be a post-buying interaction with the consumer, the idea is to
make advertisement with broadcast on TV, where is shown that when people buy
the product and accumulate 5 packages of the new flavors, they´ll receive one
“Gansito” (any flavor) for free. The idea of this promotion is to attract the people
around the country that are considered as barnacles or strange with the product,
and also increase the rates of sells. And also make all the people know about the
new flavors of the product.

Placements: One of the weakness of the company is that they don’t have the
same distribution efficiencies around the country, this can be shown in the lack of
presence of the product in the small stores at different zones of the country, that
you can only find the product in big supermarkets, and sometimes, people only can
find the chocorramo. So the strategy is to transfer the idea of little distributors in
tricycles to that zones, and talk with the owners of the stores to make them know
the profitability of the product and give them some incentives or promotions if the
reach a certain number of sells.

Budget
The Budget we estipulate that the company would take in to action this plan, would
we around the two hundred million of pesos, this is in base of the cost of the publicity
things that we have to made from cero, and also the cost of all the people that would
take part on the implementation of this strategies. The prices of all the publicity thing
are calculated in base of what the “Asociacion colmbiana de la industria publicitaria
(ADGORA)” has reported in their own web page as minimum costs of some works,
descripted in the table 5
 Concept Minimum Value
Publicity of a entire truck $1.750.000,00
Publicity of package of product $1.600.00,00
Adaptation of package of product $1.200.000,00
Direction, Pre & Post Production $1.650.000,00
Direction of commercial production $1.850.000,00
Creation of focus group test $1.550.000,00

With this the minimum value of only the publicity related things is about 10 million of
pesos, taking in to account that the idea is to make the contract with people with
experience and that are the best in their jobs, the ADGORA says that the increment is
around de 150 and 160% of the minimum price, so with this and plus the money that is
going to be used for paying to the people involve in the procces the total cost is
arrround the fifty million of Pesos.

The other part of the money is destined to the buying and contract presses involved in
the new distribution channels in the other zones of the country

Calendar
Activity/Month 1 2 3 4 5 6 7 8 9 10 11 12
Expose the idea to the
company
Re-adjust the idea (if we
have to
Creating plan for small
distribution in other part
of the country
Start making the groups
for develop the new
flavors
Creation of possible new
package
Internal test of the new
flavors
Reunion with the owners
of small stores from the
zones of the country that
we want to attack
Select the new package
design
 Focus group test for the
flavors
Focus group test for the
package
Production of the video
for the internet
Buying and contracting
the personal for the new
channel of distribution
Production for the TV
commercial
Making agreements with
the small stores from all
the country (new and old
ones) for the promotion
Launch of the internet
video
Launch of the new flavors
Launch of the TV
commercial
Evaluate the temporally
results
Make the necessary
changes

CONTROL PLAN
The control of the plan is going to be done by three types of calculations, the first one
would we the numerical distribution that it´s calculated by the follow equation

# 𝑜𝑓 𝑠𝑡𝑜𝑟𝑒𝑠 𝑤ℎ𝑒𝑟𝑒 𝑡ℎ𝑒 𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑖𝑠 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑

∗ 100
# 𝑜𝑓 𝑠𝑡𝑜𝑟𝑒𝑠 𝑡ℎ𝑎𝑡 𝑠𝑒𝑙𝑙𝑠 𝑡ℎ𝑒 𝑝𝑟𝑜𝑑𝑢𝑐𝑡

this distribution is going to be used with the new places at the different zones of the
country that the company it´s going to “attakt”.
Other way to measure the profitability of the implementation of the new channel of
distribution in that particular zones of the country is the Avarege distribution:

𝑆𝑒𝑙𝑙𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑠𝑡𝑜𝑟𝑒𝑠 𝑡ℎ𝑎𝑡 𝑡ℎ𝑒 𝑝𝑟𝑜𝑢𝑐𝑡 ℎ𝑎𝑠 𝑏𝑒𝑒𝑛 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑

∗ 100
𝑡𝑜𝑡𝑎𝑙 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠𝑒𝑙𝑙𝑠

in this case, the stores that are going to be evaluated, are going to be the “new” stores
around the contry
For knowing the evolution in the quantity of new stores where the company distribute
their products, is the client portfolio, calculated as follows

# 𝑜𝑓 𝑎𝑐𝑡𝑢𝑎𝑙 𝑐𝑙𝑖𝑒𝑛𝑡𝑠
∗ 100
# 𝑜𝑓 𝑝𝑟𝑒𝑣𝑖𝑢𝑠 𝑐𝑙𝑖𝑒𝑛𝑡𝑠

Bibliography
1. Noticias Grupo Bimbo.
2. Grupo Bimbo. Informe annual. Consultado en
http://www.grupobimbo.com/informe/Bimbo-Informe-Anual-2014/datos-
relevantes/
3. Gonzales S. Ocultan empresas alza en precios con presetnaciones de menor
tamaño http://lajornadasanluis.com.mx/economia/ocultan-empresas-alza-de-
precios-con-presentaciones-de-menor-tamano/
4. Merca 2.0. McCann renueva la imagen de Gansito marinela. 2013
5. DIAN. 2012. CLASIFICACIÓN INDUSTRIAL INTERNACIONAL UNIFORME, REVISIÓN 4
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